Formula settlement: Two of the country's three biggest...

December 16, 1992

Formula settlement: Two of the country`s three biggest infant-formula producers agreed Tuesday to pay a total $5 million in response to lawsuits filed by the state of Florida, which alleged they conspired to drive up costs. Bristol-Myers Squibb Co. agreed to pay the state $4 million and to stop marketing and pricing practices alleged to be anti-competitive. American Home Products Corp. agreed to pay $1 million. Neither company admitted wrongdoing. A similar suit against Abbott Laboratories is scheduled to go to trial next May. North Chicago-based Abbott accounts for about half of U.S. infant-formula sales.